Re: Econ Prof's letter to Pres. G.W.Bush

From: MS (mikesc_at_iname.com)
Date: 10/23/04 

Date: Sat, 23 Oct 2004 23:26:07 GMT

Has anyone considered the possibility that Bush's plan was to push the
USA into dire economic straits? This way social and other program
spending would have to be cut under the premise that they are too
expensive. Starve the programs of funding, then convince the docile
American public that they just don't function properly. It is
diabolical enough for Bush and his neocon pals to carry out.

Mason A. Clark wrote:

>
> ========================
>
> Open Letter to President George W. Bush
>
> October 4, 2004
> Dear Mr. President:
>
> As professors of economics and business, we are concerned that U.S. economic
> policy has taken a dangerous turn under your stewardship. Nearly every major
> economic indicator has deteriorated since you took office in January 2001. Real
> GDP growth during your term is the lowest of any presidential term in recent
> memory. Total non-farm employment has contracted and the unemployment rate has
> increased. Bankruptcies are up sharply, as is our dependence on foreign capital
> to finance an exploding current account deficit. All three major stock indexes
> are lower now than at the time of your inauguration. The percentage of Americans
> in poverty has increased, real median income has declined, and income inequality
> has grown.
>
> The data make clear that your policy of slashing taxes – primarily for those at
> the upper reaches of the income distribution – has not worked. The fiscal
> reversal that has taken place under your leadership is so extreme that it would
> have been unimaginable just a few years ago. The federal budget surplus of over
> $200 billion that we enjoyed in the year 2000 has disappeared, and we are now
> facing a massive annual deficit of over $400 billion. In fact, if transfers from
> the Social Security trust fund are excluded, the federal deficit is even worse –
> well in excess of a half a trillion dollars this year alone. Although some
> members of your administration have suggested that the mountain of new debt
> accumulated on your watch is mainly the consequence of 9-11 and the war on
> terror, budget experts know that this is simply false. Your economic policies
> have played a significant role in driving this fiscal collapse. And the economic
> proposals you have suggested for a potential second term – from diverting Social
> Security contributions into private accounts to making the recent tax cuts
> permanent – only promise to exacerbate the crisis by further narrowing the
> federal revenue base.
>
> These sorts of deficits crowd out private investment and are politically
> addictive. They also place a heavy burden on monetary policy – and create
> additional pressure for higher interest rates – by stoking inflationary
> expectations. If your economic advisers are telling you that these deficits can
> be defeated through further reductions in tax rates, then you need new advisers.
> More robust economic growth could certainly help, but nearly every one of your
> administration’s economic forecasts – both before and after 9-11 – has proved
> overly optimistic. Expenditure cuts could be part of the answer, but your record
> so far has been one of increasing expenditures, not reducing them.
>
> What is called for, we believe, is a dramatic reorientation of fiscal policy,
> including substantial reversals of your tax policy. Running a budget deficit in
> response to a short bout of recession is one thing. But running large structural
> deficits over a long period is something else entirely. We therefore urge you to
> consider the fiscal realities we now face and the substantial burden they are
> placing on our economy.
>
> We also urge you to consider the distributional consequences of your policies.
> Under your administration, the income gap between the most affluent Americans
> and everyone else has widened. Although the latest data reveal that real
> household incomes have dropped across the board since you took office, low and
> middle income households have experienced steeper declines than upper income
> households. To be sure, the general phenomenon of mounting inequality preceded
> your administration, but it has continued (and, by some accounts, intensified)
> over the past three and a half years.
>
> Some degree of inequality is inherent in any free market economy, creating
> positive incentives for economic and technological advancement. But when
> inequality becomes extreme, it can be socially corrosive and economically
> dysfunctional. Problems of this sort are visible throughout much of the
> developing world. At the moment, the most commonly accepted measure of
> inequality – the so-called Gini coefficient – is far higher in the United States
> than in any other developed country and is continuing to move upward. We don’t
> know where the breakpoint is for the U.S., but we would rather not find out.
> With all due respect, we believe your tax policy has exacerbated the problem of
> inequality in the United States, which has worrisome implications for the
> economy as a whole. We very much hope you will take this threat to our nation
> into account as you consider new fiscal approaches to address the nation’s most
> pressing economic problems.
>
> Sensible and farsighted economic management requires true discipline,
> compassion, and courage – not just slogans. Given the tenuous state of the
> American economy, we believe that the time for an honest assessment of the
> problem and for genuine corrective action is now. Ignoring the fiscal crisis
> that has taken hold during your presidency may seem politically appealing in the
> short run, but we fear it could ultimately prove disastrous. From a policy
> standpoint, the clear message is that more of the same won’t work. The warning
> signs are already visible, and it is incumbent upon all of us to pay attention.
>
> Respectfully submitted,
>
> Francis Aguilar
> Professor of Business Administration, Emeritus
> Harvard Business School
>
> Ramon J. Aldag
> Glen A. Skillrud Family Chair in Business
> School of Business, University of Wisconsin-Madison
>
> Teresa M. Amabile
> Edsel Bryant Ford Professor of Business Administration
> Harvard Business School
>
> Kenneth R. Andrews
> David K. Donald Professor of Business Administration, Emeritus
> Harvard Business School
>
> James E. Austin
> Eliot I. Snider and Family Professor of Business Administration
> Harvard Business School
>
> Joseph L. Badaracco
> John Shad Professor of Business Ethics
> Harvard Business School
>
> Lotte Bailyn
> T. Wilson (1953) Professor of Management
> MIT Sloan School of Management
>
> George P. Baker
> Herman C. Krannert Professor of Business Administration
> Harvard Business School
>
> Louis B. Barnes
> John D. Black Professor, Emeritus
> Harvard Business School
>
> James N. Baron
> Walter Kenneth Kilpatrick Professor of Organizational Behavior and Human
> Resources
> Graduate School of Business, Stanford University
>
> Jean M. Bartunek
> Robert A. and Evelyn J. Ferris Chair, Professor of Organization Studies
> Carroll School of Management, Boston College
>
> Yehuda Bassock
> Professor
> Marshall School of Business, University of Southern California
>
> Thomas A. Bausch
> Professor
> College of Business Administration, Marquette University
>
> Max H. Bazerman
> Jesse Isidor Straus Professor of Business Administration
> Harvard Business School
>
> Cynthia Beath
> Professor Emeritus
> McCombs School of Business, University of Texas at Austin
>
> Michael Beer
> Cahners-Rabb Professor of Business Administration, Emeritus
> Harvard Business School
>
> Jack N. Behrman
> Luther Hodges Distinguished Professor, Emeritus
> Kenan-Flagler Business School, University of North Carolina
>
> Norman A. Berg
> MBA Class of 1958 Professor of Business Administration, Emeritus
> Harvard Business School
>
> Barbara Bird
> Associate Professor of Management
> Kogod School of Business, American University
>
> John E. Bishop
> Professor of Business Administration, Emeritus
> Harvard Business School
>
> Robert B. Bostrom
> L. Edmund Rast Professor of Business
> Terry College of Business, University of Georgia
>
> Joseph L. Bower
> Donald K. David Professor of Business Administration
> Harvard Business School
>
> Stephen P. Bradley
> William Ziegler Professor of Business Administration
> Harvard Business School
>
> Arthur P. Brief
> Lawrence Martin Professor of Business
> Freeman School of Business, Tulane University
>
> Philip Bromiley
> Curtis L. Carlson Chair in Strategic Management
> Carlson School of Management, University of Minnesota
>
> Alfred D. Chandler
> Isidor Straus Professor of Business History, Emeritus
> Harvard Business School
>
> Chao C. Chen
> Professor
> Rutgers Business School, Rutgers University
>
> Charles J. Corbett
> Associate Professor of Operations Management and Environmental Management
> UCLA Anderson School of Management
>
> Thomas G. Cummings
> Professor
> Marshall School of Business, University of Southern California
>
> Michael Cusumano
> Sloan Management Review Distinguished Professor
> MIT Sloan School of Management
>
> Fariborz Damanpour
> Professor
> Rutgers Business School
>
> Jose de la Torre
> Dean, Chapman Graduate School of Business
> Florida International University
>
> John A. Deighton
> Harold M. Brierley Professor of Business Administration
> Harvard Business School
>
> Rohit Deshpande
> Sebastian S. Kresge Professor of Marketing
> Harvard Business School
>
> Nancy DiTomaso
> Professor
> Rutgers Business School--Newark and New Brunswick
>
> Jane E. Dutton
> Professor
> University of Michigan Business School
>
> Amy C. Edmondson
> Professor
> Harvard Business School
>
> Benjamin C. Esty
> Professor of Business Administration
> Harvard Business School
>
> Ronald F. Fariña
> Associate Professor
> Daniels College of Business, University of Denver
>
> Ann E. Feyerherm
> Associate Professor of Organization and Management
> Graziadio School of Business and Management, Pepperdine University
>
> James A. Fitzsimmons
> William H. Seay Centennial Professor of Business
> McCombs School of Business, University of Texas at Austin
>
> James W. Fredrickson
> Tom E. Nelson, Jr. Regents Professor of Business
> McCombs School of Business, University of Texas at Austin
>
> Sherwood C. Frey, Jr.
> Ethyl Corporation Professor of Business Administration
> Darden Graduate School of Business Administration, University of Virginia
>
> Cynthia V. Fukami
> Professor
> Daniels College of Business, University of Denver
>
> Pankaj Ghemawat
> Jaime and Josefina Chua Tiampo Professor of Business Administration
> Harvard Business School
>
> Stephen M. Gilbert
> Associate Professor
> McCombs School of Business, University of Texas at Austin
>
> James R. Glenn, Jr.
> Professor of Management
> College of Business, San Francisco State University
>
> Leslie E. Grayson
> Isidore Horween Research Professor, Emeritus
> Darden Graduate School of Business Administration, University of Virginia
>
> Jerry R. Green
> Daniel A. Wells Professor of Political Economy,
> John Leverett Professor in the University
> Harvard Business School
>
> Leonard Greenhalgh
> Professor of Management
> Tuck School of Business at Dartmouth
>
> Douglas T. Hall
> Professor of Organizational Behavior
> Boston University School of Management
>
> Donald C. Hambrick
> Smeal Chaired Professor of Management
> Smeal College of Business Administration, The Pennsylvania State University
>
> Rebecca M. Henderson
> Eastman Kodak LFM Professor
> MIT Sloan School of Management
>
> Linda A. Hill
> Wallace Brett Donham Professor of Business Administration
> Harvard Business School
>
> Raymond Hogler
> Professor of Management
> College of Business, Colorado State University
>
> Yasheng Huang
> Associate Professor of International Management
> MIT Sloan School of Management
>
> Mariann Jelinek
> The Richard C. Kraemer Professor of Business Strategy
> School of Business, College of William & Mary
>
> David B. Jemison
> Foster Parker Centennial Professor of Management and Finance
> McCombs School of Business, University of Texas at Austin
>
> John M. Jermier
> Exide Professor of Sustainable Enterprise Research
> College of Business, University of South Florida
>
> Shulamit Kahn
> Associate Professor
> Boston University School of Management
>
> Kate M. Kaiser
> Associate Professor
> College of Business, Marquette University
>
> Rosabeth M. Kanter
> Ernest L. Arbuckle Professor of Business Administration
> Harvard Business School
>
> Steven O. Kimbrough
> Professor
> The Wharton School, University of Pennsylvania
>
> Stephen J. Kobrin
> Wurster Professor of Multinational Management
> The Wharton School, University of Pennsylvania
>
> Thomas A. Kochan
> George Maverick Bunker Professor of Work and Employment Relations
> MIT Sloan School of Management
>
> Nancy F. Koehn
> James E. Robison Professor of Business Administration
> Harvard Business School
>
> Howard Kunreuther
> Cecilia Yen Koo Professor of Decision Sciences and Public Policy
> The Wharton School, University of Pennsylvania
>
> Rajiv Lal
> Stanley Roth, Sr. Professor of Retailing
> Harvard Business School
>
> Theresa Lant
> Associate Professor of Management
> Stern School of Business, New York University
>
> Paul R. Lawrence
> Wallace Brett Donham Professor of Organizational Behavior, Emeritus
> Harvard Business School
>
> Carrie R. Leana
> Professor of Business Administration and of Public and International Affairs
> Katz Graduate School of Business, University of Pittsburgh
>
> Dorothy A. Leonard
> William J. Abernathy Professor of Business Administration, Emerita
> Harvard Business School
>
> Herman B. Leonard
> Professor of Business Administration
> Harvard Business School
>
> Donald R. Lessard
> Epoch Foundation Professor of International Management
> MIT Sloan School of Management
>
> Daniel A. Levinthal
> Julian Aresty Professor of Management and Economics
> The Wharton School, University of Pennsylvania
>
> David Levy
> Professor of Management
> Department of Management, University of Massachusetts, Boston
>
> E. Allan Lind
> Thomas A. Finch Professor of Business Administration
> Fuqua School of Business, Duke University
>
> Richard M. Locke
> Alvin J. Siteman Professor of Entrepreneurship and Political Science
> MIT Sloan School of Management
>
> George C. Lodge
> Jaime and Josefina Chua Tiampo Professor of Business Administration, Emeritus
> Harvard Business School
>
> Jay W. Lorsch
> Louis E. Kirstein Professor of Human Relations
> Harvard Business School
>
> Michael Magazine
> Professor
> College of Business, University of Cincinnati
>
> Michael R. Manning
> Professor of Management
> College of Business Administration & Economics, New Mexico State University
>
> Theodore R. Marmor
> Professor of Public Policy and Management
> Yale School of Management and Political Science Department
>
> Joanne Martin
> Merrill Professor of Organizational Behavior
> Graduate School of Business, Stanford University
>
> Thomas K. McCraw
> Isidor Straus Professor of Business History
> Harvard Business School
>
> Anita M. McGahan
> Professor and Everett W. Lord Distinguished Faculty Scholar
> Boston University School of Management
>
> Kathleen L. McGinn
> Cahners-Rabb Professor of Social and Organizational Psychology
> Harvard Business School
>
> Robert P. McGowan
> Professor
> Daniels College of Business, University of Denver
>
> Robert C. Merton
> John and Natty McArthur University Professor
> Harvard Business School
>
> David M. Messick
> Kaplan Professor of Ethics and Decision in Management
> Kellogg School of Management, Northwestern University
>
> Alan D. Meyer
> Charles H. Lundquist Professor of Entrepreneurial Management
> Lundquist College of Business, University of Oregon
>
> Marshall W. Meyer
> Richard A. Sapp Professor, Professor of Management and Sociology
> The Wharton School, University of Pennsylvania
>
> Richard F. Meyer
> Thomas D. Casserly, Jr. Professor of Business Administration, Emeritus
> Harvard Business School
>
> Ian Mitroff
> Harold Quinton Distinguished Professor of Business Policy
> Marshall School of Business, University of Southern California
>
> Cynthia A. Montgomery
> Timken Professor of Business Administration
> Harvard Business School
>
> David A. Moss
> John G. McLean Professor of Business Administration
> Harvard Business School
>
> J. Keith Murnighan
> Harold H. Hines, Jr. Distinguished Professor of Risk Management
> Kellogg School of Management, Northwestern University
>
> Steven Nahmias
> Professor
> Leavey School of Business, Santa Clara University
>
> Barry Nalebuff
> Milton Steinbach Professor of Management
> Yale School of Management
>
> Das Narayandas
> Professor of Business Administration
> Harvard Business School
>
> Paul Newman
> Clark W. Thompson, Jr. Chair in Accounting
> McCombs School of Business, University of Texas at Austin
>
> William Ocasio
> John L. and Helen Kellogg Distinguished Professor of Management and
> Organizations
> Kellogg School of Management, Northwestern University
>
> Paul Osterman
> NTU Professor of Human Resources and Management
> MIT Sloan School of Management
>
> Lynn S. Paine
> John G. McLean Professor of Business Administration
> Harvard Business School
>
> Johannes M. Pennings
> Marie and Joseph Melone Professor
> The Wharton School, University of Pennsylvania
>
> Margaret Peteraf
> Associate Professor of Business Administration
> Tuck School of Business at Dartmouth
>
> Joel Podolny
> Novartis Professor of Leadership and Management
> Harvard Business School
>
> John W. Pratt
> William Ziegler Professor of Business Administration, Emeritus
> Harvard Business School
>
> Drazen Prelec
> Professor of Management Science
> MIT Sloan School of Management
>
> Keith G. Provan
> Eller Professor of Public Administration & Policy
> Eller College of Management, University of Arizona
>
> Ronald E. Purser
> Professor of Management
> College of Business, San Francisco State University
>
> Roy Radner
> L. N. Stern School Professor of Business
> Stern School of Business, New York University
>
> Daniel Raff
> Associate Professor of Management
> The Wharton School, University of Pennsylvania
>
> Howard Raiffa
> Frank Plumpton Ramsey Professor of Managerial Economics, Emeritus
> Harvard Business School
>
> V. Kasturi Rangan
> Malcolm P. McNair Professor of Marketing
> Harvard Business School
>
> Stefan H. Robock
> R. D. Calkins Professor of International Business, Emeritus
> Graduate School of Business, Columbia University
>
> David Rogers
> Professor Emeritus of Management and Sociology
> Stern School of Business, New York University
>
> John W. Rosenblum
> Dean Emeritus
> Darden Graduate School of Business Administration, University of Virginia
>
> Lori Rosenkopf
> Associate Professor of Management
> The Wharton School, University of Pennsylvania
>
> Walter J. Salmon
> Stanley Roth, Sr. Professor of Retailing, Emeritus
> Harvard Business School
>
> Carol Saunders
> Professor of MIS
> College of Business Administration, University of Central Florida
>
> Melissa A. Schilling
> Associate Professor
> Stern School of Business, New York University
>
> Arthur Schleifer, Jr.
> James J. Hill Professor of Business Administration, Emeritus
> Harvard Business School
>
> Claudia B. Schoonhoven
> Professor of Organization and Strategy
> Graduate School of Management, University of California, Irvine
>
> Bruce R. Scott
> Paul W. Cherington Professor of Business Administration
> Harvard Business School
>
> Michael S. Scott-Morton
> Jay W. Forester Professor of Management, Emeritus
> MIT Sloan School of Management
>
> James K. Sebenius
> Gordon Donaldson Professor of Business Administration
> Harvard Business School
>
> Benson P. Shapiro
> Malcolm P. McNair Professor of Marketing, Emeritus
> Harvard Business School
>
> Roy D. Shapiro
> Philip Caldwell Professor of Business Administration
> Harvard Business School
>
> William F. Sharpe
> STANCO 25 Professor of Finance, Emeritus
> Stanford Business School
>
> William W. Sihler
> Ronald E. Trzcinski Professor of Business Administration
> Darden Graduate School of Business Administration, University of Virginia
>
> Alvin J. Silk
> Lincoln Filene Professor of Business Administration, Emeritus
> Harvard Business School
>
> Harbir Singh
> Edward H. Bowman Professor of Management
> The Wharton School, University of Pennsylvania
>
> Jitendra V. Singh
> Saul P. Steinberg Professor of Management
> The Wharton School, University of Pennsylvania
>
> Sim B. Sitkin
> Associate Professor
> Fuqua School of Business, Duke University
>
> William B. Snavely
> Professor of Management
> Richard T. Farmer School of Business, Miami University
>
> Olav Sorenson
> Associate Professor
> UCLA Anderson School of Management
>
> Debora L. Spar
> Spangler Family Professor of Business Administration
> Harvard Business School
>
> Bert A. Spector
> Associate Professor of Human Resources Management
> College of Business Administration, Northeastern University
>
> Richard Staelin
> Edward and Rose Donnell Professor of Business Administration
> Fuqua School of Business, Duke University
>
> William H. Starbuck
> ITT Professor of Creative Management
> Stern School of Business, New York University
>
> John Sterman
> Jay W. Forester Professor of Management
> MIT Sloan School of Management
>
> Richard S. Tedlow
> MBA Class of 1949 Professor of Business Administration
> Harvard Business School
>
> Ramkrishnan V. Tenkasi
> Professor of Organization Change
> College of Business and Technology, Benedictine University
>
> David A. Thomas
> Naylor Fitzhugh Professor of Business Administration
> Harvard Business School
>
> William R. Torbert
> Professor
> Carroll School of Management, Boston College
>
> Anne S. Tsui
> Motorola Professor
> W.P. Carey School of Business, Arizona State University
>
> Michael L. Tushman
> Paul R. Lawrence MBA Class of 1942 Professor of Business Administration
> Harvard Business School
>
> Karl T. Ulrich
> Professor of Operations and Information Management
> The Wharton School, University of Pennsylvania
>
> Garrett J. van Ryzin
> Paul M. Montrone Professor of Private Enterprise
> Graduate School of Business, Columbia University
>
> N. Venkat Venkatraman
> David J. McGrath Jr. Professor of Management
> Boston University School of Management
>
> Richard H. K. Vietor
> Senator John Heinz Professor of Environmental Management
> Harvard Business School
>
> Mary Ann Von Glinow
> Research Professor
> College of Business Administration, Florida International University
>
> Sandra Waddock
> Professor of Management
> Carroll School of Management, Boston College
>
> Melanie Wallendorf
> Eller Professor of Marketing
> Eller College of Management, University of Arizona
>
> Richard T. Watson
> J. Rex Fuqua Distinguished Chair for Internet Strategy
> Terry College of Business, University of Georgia
>
> David Weil
> Associate Professor of Economics
> Boston University School of Management
>
> Louis T. Wells
> Herbert F. Johnson Professor of International Management
> Harvard Business School
>
> Patricia H. Werhane
> Ruffin Professor of Business Ethics
> Darden Graduate School of Business Administration, University of Virginia
>
> Birger Wernerfelt
> J. C. Penney Professor of Management Science
> MIT Sloan School of Management
>
> D. Eleanor Westney
> Society of Sloan Fellows Chair in Management
> MIT Sloan School of Management
>
> James D. Westphal
> Ed and Molly Smith Chair in Business Administration
> McCombs School of Business, University of Texas at Austin
>
> Robert B. Wilson
> Adams Distinguished Professor of Management, Emeritus
> Stanford Business School
>
> Sid Winter
> Deloitte and Touche Professor of Management
> The Wharton School, University of Pennsylvania
>
> JoAnne Yates
> Sloan Distinguished Professor of Management
> MIT Sloan School of Management
>
> David B. Yoffie
> Max and Doris Starr Professor of International Business Administration
> Harvard Business School
>
> Abraham Zaleznik
> Konosuke Matsushita Professor of Leadership, Emeritus
> Harvard Business School
>
> Ray Zammuto
> Professor of Management
> Business School, University of Colorado at Denver
>
> Paul H. Zipkin
> The T. Austin Finch, Sr. Professor of Business
> Fuqua School of Business, Duke University
>
> The above tenured or emeritus professors have signed in their individual
> capacities. The letter represents the signers’ own views, not those of the
> institutions with which they are affiliated.
>
> ==========end